Case law, Tamil Nadu land law
Appeal No.40 of 2023
The Tamil Nadu Real Estate Appellate Tribunal, in Appeal No.40 of 2023 delivered on 11 August 2023, dismissed C. Uma's appeal against the Tamil Nadu Real Estate Regulatory Authority's dismissal of her complaint concerning contributions demanded for completing Neelkamal Residential Complex. The Tribunal held that she could not avoid a contribution while the earlier permission allowing Neelkamal Apartments Buyers Association to complete the project, subject to obtaining written consent from other allottee associations with a commitment to bear proportionate costs, remained intact.
What the case concerns
Appeal No.40 of 2023 concerns Neelkamal Residential Complex, a project promoted by M/s. Real Value Promoters Private Limited with 551 allottees. C. Uma, an allottee who was not a member of either allottee association, challenged a demand by Neelkamal Apartments Buyers Association for Rs.1,20,000 from each allottee towards unfinished construction and common amenities.
The appellant alleged that the promoter had abandoned the project before completing items including CCTV cameras, pipelines, repairs to terrace leaks, exterior painting, generators, car parking allocation, fire-fighting equipment, second lifts, a compound wall and a sewage treatment plant.
Earlier regulatory permission
The Tamil Nadu Real Estate Regulatory Authority had previously permitted Neelkamal Apartments Buyers Association, through its order in C.No.80/2020 dated 19 August 2021, to carry out the remaining construction and amenities. The estimated completion cost was Rs.14,71,90,120.
That permission directed Neelkamal Apartments Buyers Association to obtain written consent from the other association or associations of allottees, authorising it to undertake the work with a commitment to bear proportionate costs. Kazhipattur Neelkamal Owners' Association was not made a party to that proceeding.
Tribunal's findings
The Tamil Nadu Real Estate Appellate Tribunal made the following findings in Appeal No.40 of 2023:
- The earlier Tamil Nadu Real Estate Regulatory Authority permission remained intact.
- While that permission remained in force, the appellant could not contend that she need not contribute towards completing the project.
- Kazhipattur Neelkamal Owners' Association had not been included as a respondent in the appellant's complaint, although she questioned the functioning of both associations.
- A dispute between an allottee association and its members about the association's functioning could not be resolved under the Real Estate (Regulation and Development) Act, 2016.
- The Tribunal could not issue directions to the National Company Law Tribunal concerning the alleged insolvency proceedings against the promoter. The appellant would have to approach that tribunal for relief.
Outcome and practical effect
The Tamil Nadu Real Estate Appellate Tribunal found no ground to interfere with the dismissal of C. Uma's complaint in C.No.163/2022. Appeal No.40 of 2023 was dismissed at the admission stage, leaving the earlier regulatory permission unchanged.
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Common questions
Did the Tribunal stop the association from demanding Rs.1,20,000 from each allottee?
No. The Tamil Nadu Real Estate Appellate Tribunal dismissed the appeal and held that the appellant could not avoid a contribution while the earlier regulatory permission remained intact.
Could Neelkamal Apartments Buyers Association complete the unfinished project work?
The Tamil Nadu Real Estate Regulatory Authority had permitted the association to complete the remaining construction and amenities. The permission required written consent from the other allottee association or associations, with a commitment to bear proportionate costs.
Can disputes about how the allottee associations function be decided under the Real Estate (Regulation and Development) Act, 2016?
The Tribunal stated that disputes between an allottee association and its members about the association's functioning could not be resolved under that Act.
Did the Tribunal grant any relief concerning the promoter's alleged insolvency proceedings?
No. The Tribunal said it could not direct the National Company Law Tribunal and that the appellant would have to approach that tribunal for necessary relief.
